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Facebook beats profit estimates, sets aside $3 billion for privacy penalty

Executives said in a conference call with investors that they expected expenses to grow 47 to 55 percent this year, updating their earlier forecast of an increase of 40 to 50 per cent


Facebook Inc on Wednesday blew past Wall Street profit estimates in the first quarter and set aside $3 billion to cover a settlement with U.S. regulators, calming investors who had worried about the outcome of a months-long federal probe. Shares of the world's biggest online social network jumped more than 10 percent to $200.50 in after-hours trade. They have now regained much of the ground lost last year amid slowing growth and costs associated with the company's privacy scandals. The settlement accrual, which Facebook set at $3 billion but said could rise as high as $5 ...

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First Published: Thu, April 25 2019. 07:01 IST